Regulation 3.1 of the SRA Indemnity Insurance Regulations states: “An accredited organization shall maintain and maintain professional indemnity insurance that provides adequate and appropriate coverage in relation to current or past practice, taking into account any other arrangements that the organization or its clients may make.” E&O insurance provides clients with vital protection in the event of unforeseen events causing them financial loss. When arranging coverage, you need to make sure it meets our minimum requirements. The EPP ensures that the latter insurer provides this additional liability coverage for an additional 90 days. This allows the company to get insurance, but cannot resume new business after 30 days. Companies must also notify us if they receive a retroactive insurance policy in the PIP, indicating the name of the new insurer and the policy number. All companies that are still in the PIP after the 30 days and therefore enter the termination period are also required to inform us of their insurance status. At the end of the 30 days, if you still have not been able to purchase insurance, you enter the notice period, which lasts 60 days. It is important that you inform us, as well as the insurer that last insured you, when this happens. However, sometimes, for whatever reason, it can be difficult to renew policies.
In this case, a company enters the extended insurance period (EPP). The EPP ensures that the latter insurer is insured for an additional 30 days. If this applies to your business, you should use the time to purchase insurance. Companies joining the EVP must send us an email firstname.lastname@example.org within five business days of joining. It is also useful if they provide information on whether they are considering closing or are still looking for insurance. You will not be able to start a new business during the notice period. While you can still look for insurance during this time, you`ll also need to create parallel plans to make sure that if you can`t purchase a policy, you can close in an orderly fashion and stop trading after the period ends. Learn more about closing. Businesses experiencing practical difficulties in obtaining liability insurance due to COVID-19 should apply for an exemption to extend the EPP/CP, but only if their insurer has agreed to the extension. The SRA is an independent regulator for legal service providers in England and Wales. This consultation has been published to gather the views of our stakeholders, including those we regulate, consumers and their representatives.
Do you agree that the ERM should adopt the standard of secrecy for non-consumers once the Insurance Act comes into force in 2015? If not, please provide all the evidence you need to indicate why we should intervene to enforce the consumer standard. Businesses that have not renewed their policy for any reason and continue to operate enter the extended insurance period (EPP). According to the rules on indemnity insurance, any company that adheres to the PIP is obliged to inform us of its position (see Article 8.1). Do you have an opinion on our assessment of the impact of these changes, and are there any impacts, data available or evidence that we should consider when developing our impact assessment? It must also establish parallel plans to ensure that, if it does not cover itself, it can close properly after the 90-day period has expired. Learn more about closing your practice guide. Do you have any other comments on the proposed changes? If you need further advice, please contact our ethics advisory team. If you merge with another company, it is important that the acquired company closes properly and that appropriate notices are sent to us. Learn more about notification.